German and Austrian residential specialist Buwog Group has signed a €550 mln loan agreement with Berlin Hyp and Helaba to refinance senior debt.
The eight year facility will be used to restructure the financing of a portfolio comprising around 18,000 units located in the German states of Schleswig-Holstein, Lower Saxony and Berlin.
'After having placed the €300 mln convertible bond in September, we are now happy to be able to further unlock value for Buwog by restructuring senior debt,' commented Andreas Segal, deputy CEO and CFO of Buwog Group.
Buwog said that the loan would improve credit costs by reducing the assets' loan to value (LTV) with the addition of up to €40 mln from its recent convertible bond. It would also alter the borrower structure and improve the corporate and management rating.
The company added that the refinancing measure would strengthen its financial result by at least €4.0 mln per year.